KUALA LUMPUR, June 22 (Bernama) -- Recent cyber-attacks on companies all over the world have rung alarm bells over how firms protect their business from being targeted by criminals. A new report tells business leaders how to crack the hackers on scams such as executive impersonation, where fraudsters dupe unwitting staff into transferring money from company accounts.
 
In the three years to 2016, almost 16,000 organisations across the globe had their IT systems breached – or 17 cases of business e-mail compromise every day, according to the US-based Internet Crime Complaint Center.
 
Eight steps, ranging from better use of technology in preventing malpractice, to encouraging whistleblowers, are included in the report, Keeping Business Clean, produced by the International Association of Certified Professional Accountants. In addition to fighting cyber security, the advice also covers how to counter theft of machinery, false invoicing and concealing activities such as forced or child labour.
 
Tanya Barman, Associate Director of Ethics, said:
 
“The three main types of fraud and corruption affecting firms are theft or misuse of a company’s assets; falsification of documents for financial gain; and bribery and improper use of confidential information. Professional accountants are trained to analyse financial and non-financial information, putting them in a good position to challenge any suspicious activity in their company. As well as the financial damage from a fraudulent act, corruption costs both the business affected by the initial crime and the supply chain, too.”

Eight ways to fight the fraudsters:

· Leadership – Businesses are encouraged to establish an anti-fraud policy and engage the board in talking to staff, customers and suppliers.

· Identify key risks – Check how fraud might happen in your company, such as through written-off stock or budget over-runs.

· Promote anti-fraud culture – Speak from the top. Executives should let staff know they have a strong process for weeding out scams. Employee reward   schemes can also reduce attempted deception in companies.

· Develop anti-fraud controls – Put extra checks on admin procedures, such as a second signature, or avoid giving authority for a job over the phone.

· Encourage whistleblowing – Retain the employee-manager route for addressing initial concerns, but give staff access to free confidential advice, and discretion when raising concerns.

· Develop a response plan – Plan for fraud before it happens. The fraud itself might be outside your control, but how you respond is within your ability, from reporting lines to a PR strategy.

· Harness technology to fight fraud – the better the technology at your disposal, the easier it may be to spot fraudulent behaviour before it’s too late.

· Develop or improve internal controls – Ensure invoices are linked to purchase orders, and remove as much as paperwork as possible, in favour of electronic systems.   

Keeping Business Clean can be downloaded at cgma.org

The Association of International Certified Professional Accountants is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 650,000 members and students in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues.

Source : Chartered Institute of Management Accountants (CIMA)

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Siew Lian
CIMA
Tel : 012 5023985
Email : chan@aicpa-cima.com 

--BERNAMA